How to Win the Stock Market Game

Dec 22, 2015, 05:23 PM

"http://peerfinance101.com/how-to-win-the-stock-market-game/ Why do most people lose money in the stock market? It's because they are playing the wrong game! The average investor made an annual return of just 2.6% over the ten years to 2013 despite the fact that the stock market increased an average 7.4% each year. What happened and why do investors lose this stock market game every year?

It helps to look at another game, that of tennis, to see why investors lose money in stocks. In tennis, the professionals know they have to take the risky shots to get every point possible. In the amateur game however, the player that makes the least amount of mistakes will win. Guess what, it's the same in the stock market game. There are really few true professionals, people that can analyze stocks perfectly. In fact, most stock market analysts don't even play the stock market game well. Earning the best return on your investments means making the least mistakes like panic selling when the market crashes or putting all your money in a few high-flying stocks.

Check out the article for the four ways to play the amateur game in stocks including diversifying your risk, keeping your fees low, not using margin and getting the easy money." #stockmarketgame #howtoinvestinstocks #stockmarketinvesting #investingbasics #howtobuystocks